Fannie Mae (FNMA)

[HoldenWalker99]

Capital market standards would be 10:1 on $25 and 20:1 on $50. Stated/par value of preferred divided by fair market value of common.

Best JPS situation is conversion at low valuation and ride potential common appreciation. Worst case in dividends in a few years. Both results in significant gains from today's prices. It's a pretty clear path with the main variable how long the path takes.

It's hard to evaluate common because it's not just the length of the path but the obstacles along the way - warrants, JPS conversion, SPS conversion, commitment fee, capital standards, etc.

In the next few years, most likely scenario us JPS 3X from here and common 2X from here.

All that extra risk for lower retruns? Shame.